Tesla And Panasonic Reach Agreement On 'Gigafactory' Battery Plant

Tesla Motors and Panasonic have reportedly reached an agreement on Tesla's massive 'Gigafactory,' which is expected to be the world's largest manufacturer of lithium-ion cells when completed.

According to the Nikkei, Panasonic—Tesla Motors' [NSDQ:TSLA] current battery supplier and a shareholder—will invest 20 billion to 30 billion yen ($194 million to $291 million at current exchange rates), and supply machinery necessary for cell production. The company could end up paying for $1 billion of the total $5 billion investment required for the factory.